Explain the difference to an investor between holding a long European Call and holding a short European Put position on a company’s shares.
Illustrate your answer with labelled payoff diagrams using information on a company of your choice available at the link below:
https://markets.ft.com/Research/markets/DataArchiveFetchReport?Category=EQ&Type=UKOPT&Date=09/11/2014
Explain how these derivative positions differ from an investor holding a long position on the company’s shares.